Today is a key day for anyone looking at the Pound vs US dollar exchange rate with the release of the latest Fed interest rate decision scheduled for 19:00 this evening. It is widely expected that the Fed will cut interest rates from the current 2.5%. Many expect a minimum cut of 0.25% with some calling for 0.5%
This has been earmarked for some time and many would argue that this has been heavily priced into the market. Even if its is priced in, I would still expect to see the US dollar weaken fractionally. Come tomorrow morning the current 2 1/2 year high for USD sellers may have gone.
Is it a good time to sell US dollars?
Currently the US dollar is trading at a 2 1/2 year high against the pound and is close to record lows against the Euro. In fact, bar one brief dip in January 2017 those selling dollars are seeing their highest return in the best part of 35 years. We have seen the dollar rally 10 cents since May or 8.25%. In anyone’s eyes that is good return. On a $200k USD sell that would net you £12,500 more.
Will a ‘no deal’ Brexit cause the Pound vs US Dollar to fall further?
The simple answer is yes, and therefore it is understandable why clients are looking to see if the pound will fall further. Since PM Boris Johnson came into number 10 he has stuck to his guns. He says we will leave the EU on the 31st with or without a deal. Likewise the EU are saying they are not willing to re-negotiate and we seem to have reached a stalemate. I for one am being optimistic. I think both parties will back down and negotiations will begin. Of course there is no guarantee a new agreement can be reached but again I am being optimistic. If a deal is reached we should see a turnaround for the pound and therefore I would suggest the current sell levels are an opportunity.
Do you need to sell US Dollars?
Do you need to sell dollars? Want get the best exchange rate?
For clients that have currency to convert to Pounds, then the current levels are extremely attractive. To discuss your currency requirements with an expert, or to get a quote to see what rate we can offer, contact us today. or email email@example.com